HomelandSecurityLeader.com

Today, there is a critical gap in our long term homeland security strategy that gets little attention.  The need for angel investors interested in investing from $25K - $1M into the start-up business plans of new homeland security ventures.

While there are plenty of venerable venture capital firms (VC) investing $2M - $100M into mature homeland security businesses, there is a significant shortage of early stage investors willing to help fund the start-up of new ventures.

While most industries have well-organized angel networks that help feed an intra-industry pipeline of new technology and service companies, the homeland security market has yet to develop such a group.

In one recent case, a $500K start-up plan was presented to a major homeland security VC for consideration.  The managing partner’s response was, “The plan looks great.  Let’s talk again when you reach $10M in revenue.”

This example clearly shows how out of touch the homeland security venture markets are with the needs of homeland security entrepreneurs, developers and inventors.

This breakdown in the traditional venture process may be due to either the newness of the market or the fact that so many homeland security VC’s teams came from the defense industrial market, where systems integrators usually gobble up most advances at the patent stage.

In that 50-year-old market, weapons system roll-ups, classification of programs and enormous financial barriers to entry have all but eliminated a place for start-ups.

Yet, two generations later, the missions, technologies and business models have changed.  In today’s world, most markets are just as likely to be impacted by a “kid” whose technology is created on his home computer or garage workbench as it is by a sprawling laboratory or mega-defense contractor.

In one DoD briefing I attended, a procurement officer detailed the mind-numbing 10-17 year path that a new system must travel to become fully deployed down to the troop-level within our military.  Meanwhile, a terrorist group can change or upgrade their weapons or technology with a simple Internet or black market purchase.

Whatever the reasons for the absence of early stage funding in the homeland security market, the effect is that promising inventions are being ignored.  And, the result has been the noticeable absence of start-up companies within the market.

Of course, for the true entrepreneur, this vacuum also creates a great opportunity for an angel network to organize and develop a niche role as an incubator of these early stage companies.  Likewise, it is critical to the safety and security of our country that there be a functional point of access for new ideas into homeland security technology pipeline.

To address this need, HSLEADER is building a network of angel investors with an interest in reviewing business plans for homeland security start-up companies seeking funding.

If you are a business- and patriot-minded investor, interested in learning more about the Homeland Security Angels Network please forward your contact information to: hsangels@hsleader.com

If you have a business plan for a homeland security start-up and are interested in having your plan evaluated by the Homeland Security Angels Network please send your contact information to: bizplans@hsleader.com.* 

* Please do not send unsolicited business plans.  To protect all parties, no business plans will be reviewed in the absence of a signed NDA.